No fewer than 34 tertiary institutions are under investigation by the Nigerian Education Loan Fund (NELFUND) over allegations that they withheld refunds from students after receiving duplicate tuition payments under the federal government’s student loan programme.
Speaking during an interview with ARISE NEWS on Sunday, the Managing Director of NELFUND, Mr Akintunde Sawyerr, explained that the agency acted after receiving numerous complaints and petitions from affected students.
According to him, the investigations are being carried out in collaboration with anti-corruption agencies, the National Association of Nigerian Students (NANS), internal auditors and other stakeholders to determine the extent of the alleged infractions and ensure students receive the refunds due to them.
“I can tell you that there are about 34 institutions that we are looking at at the moment because of the number of petitions we’ve received,” Mr Sawyerr said.
He explained that the issue arose because President Bola Tinubu directed the immediate rollout of the student loan scheme in the middle of an academic session rather than waiting for a new academic year.
As a result, many students had already paid their tuition before NELFUND later settled the same fees directly with their institutions, leading to double payments.
“What happened is that a lot of schools got double payment—some from the students and some from us. The institutions that received the duplicate payments are responsible for refunding the students,” he said.
Mr Sawyerr noted that many beneficiaries urgently need the refunds because they borrowed money from parents, relatives or other sources to pay their fees before accessing the loan scheme.
While commending some institutions for promptly refunding affected students, he said others had delayed the process, although NELFUND was still investigating whether the delays were deliberate or caused by administrative shortcomings.
Mr Sawyerr said the agency is developing a token-based payment system that will allow students to authorise tuition payments directly at their institutions using their mobile phones as a way of blocking any reoccurrence.
He also explained that NELFUND deliberately pays tuition fees directly to schools instead of students to prevent the diversion of education funds for other purposes.
The NELFUND boss also admitted that the agency lacks the legal authority to compel institutions to make refunds or prosecute offenders, noting that many frustrated students have also submitted petitions to the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
He added that NELFUND recently deployed a multi-agency team, including officials from the EFCC, ICPC, NANS and the agency’s internal auditors, to investigate one of the institutions accused of withholding refunds.
Mr Sawyerr also revealed that NELFUND has refused to approve excessive tuition increases by some institutions, insisting that the agency would not fund unjustified fee hikes while continuing efforts to improve transparency in the student loan programme.
